Asking prices for houses in the UK dropped in June, after rising consecutively in the preceding four months, a report from the property website Rightmove showed Monday. With sales volumes considerably off compared to last year, it would appear sellers are finally coming to terms with the realities of the market. The average asking price of property slipped 0.4% month-on-month in June, after rising 2.4% in May. The average asking prices declined to £226,436 from £227,441 in the preceding month. Despite the fall in June, the asking prices have increased 6% since January, Rightmove said.
SINGLE LARGEST ONE-MONTH DECLINE – Index Stands 25.3% below April 2008 Levels; 29.5% below peak of October 2007
The Moody’s/REAL National All Property Type Aggregate Index from Real Estate Analytics, LLC, (REAL), measures 135.31 for April 2009, a decrease of 8.6% from the previous month and single largest one-month decline. The Index, which has captured price data through the end of April 2009, is now 25.3% lower than it was a year ago and 29.5% below the peak measured in October 2007. The index also indicated a 27.4% drop in prices over the past two years.
More on MOODY’S/REAL COMMERCIAL PROPERTY PRICE INDEX DECLINES 8.6% FOR APRIL
Foreclosure rates in the U.S. are big news world wide. The continuing glut of foreclosed and distressed properties on the U.S. market caused home values to drop another 16.8% over this time last year, and in some parts of the U.S. the drop was even steeper.
The U.S. real estate market is either showing signs of recovery or continues to melt down to new and ever more frightening lows, depending on what you read and who is writing it.
Premier UK-based property management and real estate firm, Hamptons International, recently opened a new branch in Abu Dhabi. Offering their full spectrum of services, including residential and commercial sales and leasing, property management, valuations and research, mortgage services, mortgage calculator, and global investments and assets management, the move by Hamptons represents the ongoing consolidation of property development sector in the region.
As per usual, the best one can say about the “news” as to whether now is a good time to invest in real estate is at best confusing, at worst deliberately so. But there are some indicators giving an idea as to when and at what price is a good time to consider re-investing in property. Ignoring the obviously “spun” headlines from the government press release farms such as The Times, these are a few recent, factual articles that might be of interest as it would appear that the commercial real estate bubble is now starting to burst – and as predicted will have an impact on the credit availability in the residential sector.
Since U.S. President Barack Obama unveiled his plan to help troubled U.S. homeowners rework their mortgages by underwriting part of the expense for select lenders under very limited conditions, the results have been underwhelming.
According to a June 11th Associated Press release, U.S. foreclosures increased 18% over this time one year ago, and the crisis is now spreading to prime mortgages due to high unemployment.
A cliche, I know, but I was sent a press release recently that caught my attention. Regular readers will know I rarely publish press releases because of the unrealistic nature of the projections in most of them, but this one looks interesting.
It’s true: In some parts of the U.S., houses are going for as little as $1,000.
If you live outside the U.S. you’ve probably seen at least one article describing how some foreign investor is getting rich by snapping up $1,000 foreclosed homes and renting them out or flipping them, but beware. The chances of that actually being true are slim. It’s much more likely that investor is getting rich by selling junk properties to other foreign investors, who then are stuck with lemons they can’t unload at any price.
